PHILADELPHIA - JUNE 11: Republican Presidential candidate Sen. John McCain (R-AZ) addresses the audience during a town hall meeting at the National Constitution Center June 11, 2008 in Philadelphia, Pennsylvania. McCain spoke about gasoline prices and the war in Iraq during an appearance on NBC's "Today Show" earlier in the day. (Photo by William Thomas Cain/Getty Images)

Republican Sen. John McCain said Monday he supports lifting the federal moratorium on offshore drilling - a position that sets him at odds with most California officials, including his ally Gov. Arnold Schwarzenegger, who see the ban as the best way to protect the state's coast.

The announcement was a move to the right for McCain, who has courted environmentalists by opposing drilling in Alaska's Arctic National Wildlife Refuge and backing climate change legislation. But conservatives have been clamoring for more domestic oil and gas drilling, and GOP strategists believe the issue plays well with voters as gas prices hit record highs.

McCain's plan, which he will highlight in a speech to oil industry executives in Houston today, would end the 27-year-old moratorium and allow states to choose whether to allow drilling off their coasts. States that did so would be offered what he called "financial rewards" - likely a share of the oil and gas royalties.

"We must embark on a national mission to eliminate our dependence on foreign oil and reduce greenhouse gases through the development of alternative energy sources," McCain told reporters Monday in a preview of the speech. "And, as I said, exploration is a step toward the long-term goal."

Congress instituted the moratorium in 1981. It prevents offshore drilling along 85 percent of the nation's shores, including both the Pacific and Atlantic coasts. Every president since then has extended the federal ban.

But lawmakers from the East and West coasts, especially California and Florida, have had to fight in recent years against efforts in Congress to revoke the moratorium. Last week a House Appropriations subcommittee defeated a GOP-sponsored plan to eliminate it.

If enacted, McCain's proposal would put pressure on governors and legislatures in cash-strapped states to allow drilling as a way to bring in revenue. Lawmakers in several states, including Virginia, Georgia and South Carolina, have expressed interest in drilling if they could get a share of the royalties.

California lawmakers say the plan would effectively end the federal protections for the state's coastline. State officials say even if California blocked drilling, the state's coastline could be in jeopardy if a neighboring state, say Oregon, allowed oil rigs off its shores.

"John McCain would continue the bankrupt policies of the Bush administration by jeopardizing our precious coasts and our $60 billion recreation economy with 1.6 million jobs," Sen. Barbara Boxer, D-Calif., said in a statement.

McCain's position could expose him to some political risk in coastal states where offshore drilling is highly unpopular, including swing states such as New Jersey and Florida, which McCain hopes to win in November. Some of McCain's close allies - including Schwarzenegger and Florida Gov. Charlie Crist, who is seen as a possible running mate - have led opposition to similar proposals in the past.

Schwarzenegger's aides said Monday the governor opposes McCain's plan to lift the ban.

"The governor supports the moratorium," said Aaron McLear, Schwarzenegger's spokesman. "He fully and passionately supports John McCain for president, but they will disagree from time to time, and this is one of those cases."

But McCain's position is likely to help him solidify support among conservatives, which political analysts say he needs to do to guarantee a strong GOP turnout in November. His position also puts him in line with Republicans in the House and Senate, who are pushing legislation in Congress to lift the ban.

McCain's support for offshore drilling has been off-and-on. He backed measures in 2001 and 2006 to allow drilling off Florida's coast, but voted against a 2003 measure to allow it in coastal waters off Florida and other states. He has voted repeatedly against drilling in the Arctic National Wildlife Refuge and said Monday it is a "pristine" area that should be off-limits.

Environmental groups said McCain's proposal is at odds with his own legislative proposals in recent years to set mandatory limits on greenhouse gases, which would ultimately shift America away from fossil fuels.

"We have an unknown potential offshore in the Atlantic, Pacific and eastern Gulf of Mexico where it's been illegal to look for oil," Gingrich said. "The fact is there are a lot of American sources we could be using."

History of oil drilling off California

1897: The world's first offshore well was drilled at the end of a wharf in Summerland, just east of Santa Barbara.

1969: On Jan. 28, a blowout occurred at Union Oil's offshore rig Alpha, about 5 miles off the coast from Summerland. About 3 million gallons of crude oil spilled over 10 days, fouling 800 square miles of ocean; 35 miles of coastline were coated with oil up to 6 inches thick.

1981: Congress imposes a moratorium on leasing for oil and gas exploration and production along the Atlantic and Pacific coasts and Alaska's Bristol Bay.

1995: With no new exploration and drilling, production off the California coast declines, peaking in 1995 at 72 million barrels. Today, 26 million barrels of oil and 52 billion cubic feet of gas are produced annually from 23 platforms.

1998: President Clinton extends Bush's executive order until June 2012.

Estimated reserves: The federal government estimates California's coastal waters could hold up to 10.13 billion barrels of oil. That's enough to supply America's needs for about 17 months. It would feed California's total oil appetite for 15 years.

Sources: U.S. Department of Energy; U.S. Minerals Management Services; Chronicle research